Australia's AMP March quarter net cash flows rise

RebeccaThurlow

SYDNEY (MarketWatch) -- Australia's AMP Ltd. (AMP.AU) said Friday net cashflows in its wealth management unit more than doubled in the three months ended March 31 to A$753 million from A$358 million a year earlier.

Chief Executive Officer Andrew Mohl said the business had experienced increased inflows through financial planners and corporate pension funds in what is traditionally the slowest quarter of the year for AMP.

Mohl said the impact of changes to Australia's pension fund regime, known locally as superannuation, in recent years as well as reforms coming into effect July 1 will have a long term impact on the attractiveness of the industry.

AMP has modeled the impact of the latest changes and expects assets under management for the sector to increase by an additional 1-1.5% per annum in the medium to long term.

"Successive governments over two decades have shaped superannuation as the preferred structure for retirement savings and major reforms during the past two years have cemented this positioning," said Mohl in a statement.

AMP said its planners have experienced increased levels on inquiry and activity in recent months, and are expecting a busy year.

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